Payday lenders charging high interest rates for short-term loans could face the same advertising restrictions as cigarette or gambling companies.

Martin Wheatley, the chief executive of the Financial Conduct Authority, said a total advertising ban was one of the option it was considering as it prepared to take on regulation of the industry from April next year.

But charities and consumer groups said any advertising ban had to be matched with tougher action on interest charges.

The comments followed a government-led summit at which some of the biggest payday lending firms were grilled about the problems that beset the industry.

Mr Wheatley did not rule out a total ban on advertising, similar to that imposed on tobacco companies, or tighter restrictions on when and where they could promote their products, as currently happens with gambling companies. There are clear concerns that many of the adverts appear on daytime TV, where they are targeting more unemployed and vulnerable viewers.

However, despite the regulator's robust statements, there are concerns that the Government has stood back from imposing a cap on charges.

Martin Lewis, the founder of Moneysavingsexpert.com, said it was imperative that there was a cap on the cost of borrowing. "If for example you borrow £100 then you should never have to pay back more than £150, including fees, interest and rollover charges," he said.

"However, on the back of this, I was pleased to hear the minister reaffirm that the Financial Conduct Authority has the power from April 2014 to do this."

Payday lenders have faced increased scrutiny in recent months. Last week the Office of Fair Trading referred the £2bn industry to the Competition Commission after uncovering evidence of "widespread irresponsible lending".

The watchdog said it had found "deep-rooted" problems such as failing to make adequate affordability checks and encouraging customers to roll over their loans, so increasing the eventual cost.

In recent weeks the Advertising Standards Authority has also insisted that some payday lenders, such as Cash Lady and FirstPayDayLoan UK, amend their advertising.

Mr Lewis said: "The real problem is that the summit itself is three years too late. People have become dependent [on payday loans] to manage their money and the fact these companies are so well-known and common on our TV screens has effectively legitimised them, even for those for whom they are unsuitable.

"The real question is whether this [summit] was just a talking shop of hot air, or will something actually get done. I wait to be convinced."

Gillian Guy, the chief executive of Citizens Advice, the charity, said: "It is good that extra attention has been given to the problems in the payday loans industry, but I was disappointed that payday lenders are still determined to play down problems. It's impossible to deny that people have been seriously affected by the irresponsible practices of this industry.

"The fact that people are coming to Citizens Advice for help because they have been given loans they can't afford to repay and are hounded by texts and phone calls as lenders try to claw back debts shows this is a problem which urgently needs to be tackled."